Over the past few years, many of my clients have made home purchases and are beginning to turn their attention to what’s next: saving for retirement, contributing to their kids’ college fund, or taking steps to reduce their taxes.

If you haven’t considered owning investment property as an option, maybe now is the time—doing so comes with some major benefits that can be a driver for a strong financial well-being for you and your family. There are four benefits, in particular, that I’d like to go over with you now:

Wealth. Purchasing an investment property is great for wealth accumulation over time. Ultimately, you’ll own that property, and it’ll be an asset to your financial security.

Appreciation. Though market fluctuation is a factor, the appreciation rate we tend to see year over year in California is 5%. Putting 20% down on, say, a $500,000 investment will actually yield a much higher ROI than that 5% appreciate rate would suggest.

Cash flow. Like property values, the cost of rent steadily rises at a rate of about 5% each year. As you’re charging that additional 5% from your tenants from one year to the next, the cash flow you’re collecting will also continue to grow. Give it some time, and you’ll reap the benefits of great cash flow from your property.

Tax benefits. Often overlooked, an important thing to consider is that you’re able to write off depreciation—the physical attributes and structure of the property. By the time you own the property, this comes out to be about half of its value.

If you have questions about what I’ve discussed in this video or about any other real estate-related questions, please reach out to me. We’d love the opportunity to assist you!

About Tim Majka

The team at Imagine Realty specialize in residential and residential income property throughout Long Beach and the greater Los Angeles and Orange County area. Imagine Realty has over 50 years combined experience in the real estate industry and is ranked in the top 1% of real estate teams in Southern California.

Hear what people are saying about us:

Tim went far and beyond what I expected from a real estate agent. He drove me around the city and took me to as many places and I needed to see. This was the first property I’ve ever bought in my life so there was nothing he wouldn’t do to make sure it was right. There real...

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Tim went far and beyond what I expected from a real estate agent. He drove me around the city and took me to as many places and I needed to see. This was the first property I’ve ever bought in my life so there was nothing he wouldn’t do to make sure it was right. There really is nothing he wouldn’t do to please his clients!

I’ve worked with Tim on 3 transactions now and we’ve always had fantastic results! He’s just a really good Realtor and a really good guy. He’s always accessible and I really feel like he has my best interests in mind and that’s what’s so commendable. If it’s the right time ...

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I’ve worked with Tim on 3 transactions now and we’ve always had fantastic results! He’s just a really good Realtor and a really good guy. He’s always accessible and I really feel like he has my best interests in mind and that’s what’s so commendable. If it’s the right time to buy he’ll tell you if it’s the right offer or the wrong offer. There’s just something about him and his company where you just trust what they’re telling you. He’s really a guidance counselor, not just a real estate agent.